How To Find Hot Cheap Stocks

Cheap stocks are a coveted investment.Whether they are undervalued or just cheap in
stock price they usually have a big upside potential that stock traders
crave.The key is to find these cheap
stocks before they are discovered by the major institutions.Once the institutions get a hold of them it's
all over.They will buy up all the
shares and turn penny stocks into big caps.

How to find hot cheap stocks is the challenge we are going
to make easy in this article.There are
great sites out there like Cheap Stocks that help you find the best
investments.Using these sites will help
you identify these low priced investments and identify what to buy.

Things You Will Need

Investment ideasCash to invest

Step 1

Use a Stock Research Website

Visit sites that have good stocks lists like Cheap Stocks to
help you find lists of stocks that trade under $10 per share.You can use their list of stocks that sorts
each company by the dollar their stock trades at.You can also look for investment ideas based
on the industry of the company of by their best stock list which has list based
on financial ratios like PE and dividend.Cheap dividend stocks are the gifts that keep on giving.

Step 2

Forums

Penny stock forums are where traders exchange tips and
advice about stocks they are buying.Be
careful of the forums though.Shady
companies often put less than honest promotional information into these sites
to pump up their stock before a big sell off.

Step 3

Research Each Stock

After you have identified low priced stocks you want to
invest in go to Yahoo Finance and plug in the symbol for the company.Review the financial stats that you see there
to evaluate the company as a whole.You
can review their financial statements as well as financial news and data.

Step 4

Track Your Investment

After identifying companies to invest in and doing your
research it is time to buy.After you
buy you cannot just walk away from your investment.With cheap stocks you really want to pay
attention each day to see how they are tracking.Wild swings can occur when the prices are
low.

Step 5

Continue To Do Your Research

Investment homework is not a one time thing.You need to put in time each week to review
the news and financial data for the company you have invested in.Keep your eye out for new stocks that meet
your investment criteria.

Use penny stock websites, do your research, invest and track
your progress.Enjoy the ride that only
a cheap stock can provide.